Venezuelan Oil Company Provides $30 Billion for Development http://venezuela-us.org/2012/04/18/venezuelan-oil-company-provides-30-billion-for-development/
Venezuela’s state oil company PDVSA provided $30 billion in 2011 in contributions to the Great Housing Mission, the National Development Fund (FONDEN) and social development projects.
FONDEN is a state company created to contribute to the country’s economic recuperation and build social investment. It is also used to address the public debt, allowing the State to develop policies to reduce indebtedness. It made an initial contribution of $6 billion in 2005, which came from reserves and surplus oil profits and was used to finance social and productive development in areas such as health, the environment, energy, defense, basic industries, education, agriculture, and special strategic projects.PDVSA President Rafael Ramírez said in a report presented in Caracas today that, in 2011, the company allotted $4 billion to the Housing Mission, $11 billion to various social development projects by the State, and $14 billion to FONDEN.He explained that these contributions were made possible due to windfall oil profits by the company, whose earnings go largely to the State.Ramírez, who is also Venezuela’s Minister of Oil and Mining, indicated that the net profits of the company, before contributions by the State, were over $35 billion, and thanks to the “extraordinary dividends to our shareholders,” it was able to send $30 billion to the Venezuelan people for social investment.“This is a public company at the service of our shareholder – the State – so that it can distribute [the funds] in the way that best corresponds to the interests of the nation, and it is an example of the solidity of our contributions,” he said.